Mortgage Shoppers: How Much Do They Save?
| Autor: | Sven Damen, Erik Buyst |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
Finance
Economics and Econometrics 050208 finance Opportunity cost biology business.industry 05 social sciences Euros Shared appreciation mortgage Loan-to-value ratio biology.organism_classification Net present value Accounting 0502 economics and business Economics Balloon payment mortgage Mortgage underwriting 050207 economics business |
| Zdroj: | Real Estate Economics. 45:898-929 |
| ISSN: | 1080-8620 |
| DOI: | 10.1111/1540-6229.12167 |
| Popis: | Survey evidence suggests that many U.S. and European consumers do not spend a lot of time comparing mortgage products. We show, however, that mortgage shopping is associated with a substantial monetary payoff, using a unique data set from a website where borrowers (not the lenders) can post their complete set of received mortgage rate offers. A borrower who shops for five mortgage offers is able to save 7,078 euros in net present value on average. The potential savings suggest suboptimal mortgage shopping as the opportunity cost of time to renegotiate additional quotes is unlikely to be that high. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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